Changing boot device for a QEMU-KVM virtual machine

If libvirt doesn't reload VM settings on start/stop, virsh edit command may help. And please write entire XML file and libvirt version

Hmm... everything seems OK. Try adding

<boot dev='hd'/>
<boot dev='cdrom'/>
<bootmenu enable='yes'/>

to <os> section and look if cdrom appears in boot menu. Also try removing all <boot> records from <os> and adding

<boot order='1'/>

to <disk> section